PersonalizationSimilarly to many other industries, real-time data leads to a more personalized customer experience. Customers are more likely to feel as though they are being fairly treated and assessed, as individuals. They are no longer at the mercy of generalizations. This provides a more positive experience for them, making them more likely to remain loyal customers. This also provides a more accurate risk assessment for the insurance companies. They, too are no longer at the mercy of generalizations.
UnderwritingUnderwriters are also no longer at the mercy of generalizations. Through real-time data mining, they can better evaluate an individual, to match him or her with the best policy. They can also provide more accurate pricing based on the data assessments.
Fraud RiskUnfortunately, fraudulent claims are rather common. But data mining and predictive analytics are starting to change that. Not only can they better evaluate the initial risk of fraud, but after a claim is made, they can track digital and social channels for evidence of fraudulent behavior.
Reducing CancellationsSimilarly to many other industries, advanced analytics greatly improve customer retention. In the insurance world, they leverage data to identify risk of impending cancellations. This way that can take preventative measures, and address unhappy customers. They can even seek out more loyal consumers. Insurance companies are using predictive analytics to help them choose long-term clients. Because everyone knows that retaining customers is cheaper than getting new ones.
Relationships With CustomersThis has clearly been brought up over and over again. And its an area where every single business or organization can improve; data analytics are the most effective way to improve customer experiences. The insights from data analytics can be used to identify lifestyles, customer preferences, and characteristics. If employees that interact with customers have access to this data, then they can act on this. The data allows them to truly get to know the customers. By identifying with the customers, they are more interested in providing a positive experience for them. Simultaneously the customer really appreciates the personalized experience.
These are just some of the benefits that insurance companies are seeing from Big Data and advanced analytics. This is why the leaders in the insurance industry are investing heavily in Big Data solutions.